G/SCM/N/372/EU/Add.8  
24 August  2021 
(21-6383) Page: 1/41 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT  1994 AND ARTICLE  25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union dated and received on 
12 July 2021, relates  to subsidy programmes of Estonia . 
 
_______________  
 
 G/SCM/N/372/EU/Add.8  
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  ESTONIA  
 
TABLE OF CONTENTS  
1  AID FOR RESEARCH AND DEVELOPMENT  ................................ ................................ ...... 4 
1.1  R & D Financing Programme  ................................ ................................ ..........................  4 
2  OTHER HORIZONTAL AID  ................................ ................................ .............................  5 
2.1  Support for the Participation of Entrepreneurs in Trade Fairs  ................................ ..............  5 
2.2  Training Programmes for Compa nies ................................ ................................ ...............  6 
2.3  Guarantee Scheme for Companies  ................................ ................................ ..................  7 
2.4  Start-Up Programme  ................................ ................................ ................................ ..... 8 
2.5  Employment Aid  ................................ ................................ ................................ ...........  9 
2.6  Loan Scheme for Companies  ................................ ................................ ........................  11 
2.7  Consultancy Programme  ................................ ................................ ..............................  12 
2.8  Subsidies for Companies in the context of COVID -19 pandemic  ................................ ........  13 
3  REGIONAL AID  ................................ ................................ ................................ ...........  15 
3.1  Programme of Investment Support  ................................ ................................ ...............  15 
4  ENVIRONMENTAL AID  ................................ ................................ ................................  17 
4.1  Substitution of the Pollution Charge  ................................ ................................ ..............  17 
4.2  Environmental Programme  ................................ ................................ ..........................  18 
4.3  Support for electricity produced from renewable sources and efficient cogeneration  ............  20 
4.4  Modernisation of electricity generation i nstallations through transitional free 
allocation of greenhouse gas emission allowances  ................................ ................................ . 21 
4.5  Exemption on Excise Duty for Biogas used as Fuel.  ................................ .........................  22 
4.6  Subsidy for Biomethane Production.  ................................ ................................ ..............  22 
4.7  Exemption on Excise Duty for Electricity for Electro -intensive Companies.  .........................  23 
4.8  Exemption on Excise Duty for Natural Gas for Companies with Intensive Gas 
Consumption.  ................................ ................................ ................................ ...................  24 
4.9  Temporary Use of Special purpose Diesel for Companies Holding an Extraction Permit  ........  24 
5  DOMESTIC SUPPORT IN AGRICULTURE  ................................ ................................ ...... 25 
5.1  General Services  ................................ ................................ ................................ ........  25 
5.2  Public Stockholding For Food Security Purposes  ................................ ..............................  28 
5.3  Domestic food AID  ................................ ................................ ................................ ...... 29 
5.4  Decoupled income support  ................................ ................................ ...........................  30 
5.5  Income insurance and income safety - net programmes  ................................ ...................  31 
5.6  Government financial participation in income insurance and income safety - net 
programmes  ................................ ................................ ................................ .....................  32 
5.7  Structural adjustment assistance provided through resource retirement programmes  .........  32 
5.8  Payment for Relief from Natural Disasters ................................ ................................ ...... 32 
5.9  Structural Adjustment Assistance Provided Through Investment Aids  ................................  32 
5.10  Payment Under Environmental Programs  ................................ ................................ ..... 34 
5.11  Insurance support  ................................ ................................ ................................ ..... 35 
5.12  Fuel Tax Exemption  ................................ ................................ ................................ .. 36 G/SCM/N/372/EU/Add.8  
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  5.13  Short -Term Loans and LOAN Guarantees  ................................ ................................ ..... 37 
5.14  Transitional National Aid (coupled)  ................................ ................................ ..............  38 
6  DOMESTIC SUPPORT IN FISHERIES SECTOR  ................................ ..............................  38 
6.1  European Maritime and Fisheries Fund (EMFF) 2014 -2020 Support  ................................ ... 40 
 G/SCM/N/372/EU/Add.8  
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  1  AID FOR RESEARCH AND DEVELOPMENT  
1.1  R & D Financing Programme  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The programme aims at increasing the competitiveness of companies and research and development 
institutions through the support of  R&D projects leading to new technologies, prod ucts, processes 
and services.  
3. Background and authority for the subsidy  
Enterprise Estonia (Foundation) . 
Estonian Research Council (ETAG) . 
City of Tartu . 
Ministry of Defence . 
Ministry of Economic Affairs and Communication s 
Tehnopol  Science and Business Park (Foundation) (Tehnopol ). 
4. Legislation under which subsidy is granted  
Regulation of Minister of Entrepreneurship and Information Technology Nº 46 of 2 7 July 2018. 
Procedure of the Management Board of Enterprise Estonia of 1 0 January 2020. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 27 of 17 April 2019. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 52 of 
10 September  2018. 
Decree of Minister of Education and Science Nº 486 of 3 1 December  2015 (amendment 2019) . 
Regulation of Tartu City Council Nº 55 of 2 1 February  2019. 
Decree of Minister of Defence Nº 319 of 4 June 2016. 
Agency contract of Ministry of Economic Affairs and Co mmunications Nº 1.9-8/18-144-1. 
Contract between Tehnopol and Tallinn City Enterprise Department N º 4-11/41 of 2 1 April 2020; 
Contract between Tehnopol and Aiotex OÜ 5 -3/151N º; Contract between Tehnopol an d R8 
Technologies OÜ N º 5-3/149 ; Contract between Tehnopol and Bikeep OÜ Nº 5-3/152 ; Contract 
between Tehnopol and AS Teede Tehnokeskus ; Contract between Tehnopol and Fusebox OÜ 
Nº 5-3/154 . 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
In case of Enterprise Eston ia: 
The subsidies are provided to SMEs and large companies which undertake  experimental development 
projects up to 60% of project's eligible costs . Subsidies are also provided for innovation aid for SMEs , 
for process and organisational innovation  and for d igitalisation and automatization of processes.  G/SCM/N/372/EU/Add.8  
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  Maximum amount of support is 1.250 Mio EUR.  
In case of support from ETAG : subsidies are provided to recruit development advisers.  
In case of support from City of Tartu  subsidies are provided for digitalisation and automatization of 
processes.  
Ministry of Defence provides subsidies for experimental development projects and for SME 
innovation . Experimental development projects can be supported up to 25 % of eligible costs , which 
may reach up to 45 % in certain cases . SME innovation projects can be supported up to 50 % of 
eligible costs.  
Ministry of Economic Affairs and Communications provides support in the frames of one agency 
contract to conduct industrial researc h up to 6 0% of eligible costs.  
In case of foundation Tehnopol  support is granted for testing and piloting projects in the frames of 
Smart City Tallinn Innovation Fund . Maximum grant amount is EUR 15,000 per project.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 1.732 million . 
Fiscal year 20 20 – EUR 3.135 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The programme s are valid till 3 1 December  2020. 
9. Statistical data permitting an assess ment of the trade effects of a subsidy  
N/A. 
2  OTHER HORIZONTAL AID  
2.1  Support  for the Participation of Entrepreneurs in Trade Fairs  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
To organise and support the p articipation of entrepreneurs in trade fairs.  
3. Background and authority for the subsidy  
Tallinn City Enterprise Department . 
4. Legislation under which subsidy is granted  
Regulation of Tallinn City Council Nº 3 of 2 3 January  2014; Regulation of Tallinn City Council Nº 12 
of 5 February  2014 
Regulation of Tallinn City Council Nº 6 of 2 1 March  2019. 
5. Form of the subsidy  
Grant.  G/SCM/N/372/EU/Add.8  
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  6. To whom and how the subsidy is provided  
Subsidy is paid to the participating company (or sole proprietor) as a payment for participation costs, 
stand rental and other similar expenses . The subsidy can cover up to 100% of the expenses.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the  subsidy  
Fiscal year 201 9 – EUR 0.089 million . 
Fiscal year 20 20 – EUR 0.022 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different subsidies . 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.2  Training  Programmes for Companies  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The aim of the training support is to promote the in -service training an d knowledge of start -ups (in 
the frames of incubation services) and other companies.  
3. Background and authority for the subsidy  
Tallinn City Enterprise Department . 
Incubator Tallinn . 
Estonian Unemployment Insurance Fund . 
Enterprise Estonia (Foundation) . 
State Shared Service Center ( SSSC) . 
4. Legislation under which subsidy is granted  
Regulation of Tallinn City Council Nº 46 of 1 1 December  2008. 
Regulation of Tallinn City Council Nº 35 of 1 5 August  2012. 
Regulation of Tallinn City Council Nº 21 of 3 1 October  2020. 
Regulation of Tallinn Cit y Council Nº 13 of 1 4 June 2012; Regulation of Tallinn City Council Nº 13 of 
5 May 2016. 
Labour Market Services and Benefits Act . 
Government Regulation Nº 130 of 1 7 November  2016; Government Regulation Nº 58 of 
23 February  2017. 
Decree of Minister for Health and Labour Nº 222 of 4 December  2014; Decree of Minister of Soci al 
Affairs Nº 49 of 6 August  2019; Decree of Minister for Health and Labour Nº 69 of 2 6 June 2020. 
Decree of Minister of Social Protection and Minister of Health and Labour Nº 57 of 2 7 March  2015, 
Decree of Minister of Social Affairs Nº 61 of 3 0 September  2019. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 27 of 1 7 April 2019. G/SCM/N/372/EU/Add.8  
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  Regulation of Minister of Education and Research Nº 16 of 10  May 2018. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
The subsidy is provided to companies to cover up to 100 % of eligible costs.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 0.912 million . 
Fiscal year 20 20 – EUR 0.991 million. 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different  programmes . 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.3  Guarantee  Scheme for Companies  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
To promote SMEs and large companies  by supporting their access to capital by securing their bank 
loans.  
3. Background and authority fo r the subsidy  
Foundation KredEx . 
Rural Development Foundation . 
4. Legislation under which subsidy is granted  
Support of Enterprise and State Loan Guarantees Act . 
Conditions for guaranteeing SMEs loans ( de minimis aid scheme ) approved by the Decree of the 
Head of Foundation Nº 21-üld of 1 2 March  2014; Conditions for guaranteeing business loans 
(de minimis aid scheme ) approved by the Decree of the Head of Foundation Nº 72-üld of 
25 August  2015. 
Rural Development and Agricultur al Market Regulation Act . 
Decision of Supervisory Board of Rural Development Foundation of 8 December  2017. 
5. Form of the subsidy  
Loan and leas e guarantees . G/SCM/N/372/EU/Add.8  
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  6. To whom and how the subsidy is provided  
The guarantees of Foundation KredEx are meant for companies whose value of the collateral property 
or self -financing is not sufficient for getting a bank loan or who do not have a long history of 
operation . Guarantees are mainly provided to small and mediu m sized companies (SMEs), loans are 
secured up to 75 % of the loan amount.  
The loan recipient takes the primary responsibility for the loan, guaranteeing the loan with his 
property and/or that of third persons, and/or a personal surety . In case of surety, K redEx will take 
second responsibility . That means that if a business plan fails and the businessman will not be able 
to manage his/her loan, the loan guarantee property shall be disposed at first . The guarantee of 
KredEx shall be realised, if the income ob tained from the realisation of guarantee property is not 
sufficient to fulfil the claims of the bank.  
The maximum guarantee amount for small and medium -sized enterprises is 5 Mio EUR  and the 
maximum guarantee amount for  big enterprises is 1 .5 Mio EUR.  The guarantee amount decreases 
proportionally with the decreasing of the loan/leasing amount.  
The contract fee is 1 % of the guarantee amount . Guarantee amount for loan and leas e starts from 
0.8% of the guarantee balance per year and for bank guarantees fro m 0.4% of the guarantee 
balance per year.  
Rural Development Foundation issues a guarantee for the debt obligation of an entrepreneur (loan, 
leasing, etc) . A guarantee can be received by a SME . The guarantee covers not more tha n 80% of 
the loan and does not  exceed 2 .5 – 3.0 Mio EUR.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – state aid  amount EUR 0.404 million . 
Fiscal year 20 20 – state aid amount  EUR 0.506 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different programmes.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.4  Start -Up Programme  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
To provide individuals with the incentive to start business and create new jobs . Likewise, the 
programme intends to increase the survival ratio of new enterprises.  
3. Background and authority for the subsidy  
Eston ian Unemployment Insurance Fund . 
Tallinn City Enterprise Department . 
Incubator Tallinn . 
For City of Narva - Department for Development and Economy . G/SCM/N/372/EU/Add.8  
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  4. Legislation under which subsidy is granted  
Labour Market Services and Benefits Act . 
Decree of Minister for Health and Labour Nº 222 of 4 December  2014; Decree of  Minister of Social 
Affairs Nº 49 of 6 August  2019; Decree of Minister for Health and Labour Nº 69 of 2 6 June 2020. 
Government Regulation Nº 130 of 1 7 November  2016. 
Decree of Minister of Social Protection and Minister of Health an d Labour Nº 57 of 2 7 March  2015, 
Decree of Minister of Social Affairs Nº 61 of 3 0 September  2019. 
Regulation of Tallinn City Council Nº 38 of 1 December  2011. 
Regulation of Tallinn City Council Nº 13 of 5 May 2016. 
Regulation of Narva City Council N0 18 of 2 5 October  2018. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
An applicant may be a sole proprietor or undertaking being founded in Estonia or an undertaking 
that was entered into the Commercial Registry . 
In case of City of Tallinn and Incubator Tallinn subsidy programmes the applicant has to be located 
in Tallinn , inter alia incubation services are provided for applicants.  
In case of City of Narva the applicant has to be located in Narva  in order to stimulate and develop 
business start -ups and to support start -ups in Narva.  
The grant amount will not exceed EUR 32,000 and 80 % of eligible costs in case of Enterprise of 
Estonia or EUR 3,000 EUR and 50 % of the eligible costs in case of City of Narva.  
Estonian Unemployment Insurance Fund business start -up subsidy is for registered unemployed 
persons who want to start business activities.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 1.976 million . 
Fiscal year 20 20 – EUR 1.554 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different subsidies.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.5  Employment  Aid 
1. Period covered by the notification  
2020, 2019. G/SCM/N/372/EU/Add.8  
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  2. Policy objective and/or purpose of the subsidy  
The aim of the programme is the integration of unemployed people and people belonging to risk 
groups to the labour market, to increase the efficiency and quality of labour market servic es; to 
stimulate job -creation and recruit IT specialists.  
3. Background and authority for the subsidy  
Eston ian Unemployment Insurance Fund . 
Enterprise Estonia (Foundation) . 
State Shared Services Centre ( SSSC) . 
4. Legislation under which subsidy is granted  
Labour Market Service s and Benefits Act . 
Government Regulation Nº 130 of 1 7 November  2016. 
Decree of Minister for Health and Labour Nº 222 of 4 December  2014; Decree of  Minister of Social 
Affairs Nº 49 of 6 August  2019; Decree of Minister for Health and Labour Nº 69 of 2 6 June 2020. 
Decree of Minister of Social Protection and Minister of Health and Labour Nº 57 of 2 7 March  2015, 
Decree of Minister of Social Affairs Nº 61 of 3 0 September  2019. 
Government Regulation Nº 130 of 1 7 November  2016. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 18 of 1 9 April 2018. 
Regulation of Minister for Health and Labour Nº 20 of 8 May 2018. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
Subsidies are provided to companies and sole proprietors for recruitment of disadvantaged and 
disabled workers, to cover additional costs of employment of disabled workers (adapting premises 
or equipment) . 
Wage subsidy is a benefit payable to employers for employing unemployed persons, who belong in 
risk groups (e.g. long -term unemployed, ex -prisoners) . The size of the subsidy is 50 % of the wage 
or salary of the employee but not more than the minimum monthly wage established by the 
Government . The subsidy is paid for 6 months.  
Subsidy for the adaptation of premises and equipment is provided in case of recruitment of 
disadvantaged workers . The size of the subsidy is 50 % of the cost of the adjustment but not in an 
amount exceedi ng the upper limit established for support . 
In case of subsidy of Enterprise Estonia the support is provided for companies to recruit IT -specialists 
from foreign countries . Maximum support is EUR 2,000 per specialist.  
In case of subsidy of SSSC  the purpose of the support is to encourage less competitive target groups 
to find employment and remain in the labor market . The maximum amount is EUR 400,000 per 
project, support may be granted up to 100 % of the eligible costs of the project . The beneficiary may 
be legal person ; government agency or a state agency administered by it or  local government unit.  G/SCM/N/372/EU/Add.8  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 3.801 million . 
Fiscal year 20 20 – EUR 3.511 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different subsidies.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.6  Loan Scheme for Companies  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The loan is aimed at improving the access of SMEs to capital.  
3. Background and authority for the subsidy  
Rural Development Foundation . 
4. Legislation under which subsidy is granted  
Rural Development and Agricultural Market Regulation Act . 
Management Contract Nº 10; Agreement Nº 3 amending Management Contract Nº 10; Agreement 
Nº 346 amending Management Contract Nº 10. 
Agreement Nº 157 amending Management Contract Nº 10. 
5. Form of the subsidy  
Loans.  
6. To whom and how the subsidy is provided  
Loans are meant for sustainable SMEs for investment and working capital . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – state aid amount  EUR 0.009 million . 
Fiscal year 20 20 – state aid amount  EUR 0.013 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The program of Rural Development Foundation is valid till 3 1 December  2020. 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. G/SCM/N/372/EU/Add.8  
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  2.7  Consultancy Programme  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/ or purpose of the subsidy  
To enable to purchase consultations from professional consultants , to prepare applications  or to get 
information regarding Intellectual Property  and to organise conferences.  
3. Background and authority for the subsidy  
Eston ian Unemployment Insurance Fund . 
Estonian Research Council . 
Enterprise Estonia (Foundation) . 
Foundation Kredex . 
Incubator Tallinn . 
Foundation Ida -Viru Enterprise Center (IVEC) . 
4. Legislation under which subsidy is granted  
Labour Market Services and Benefits A ct. 
Government Regulation Nº 130 of 1 7 November  2016. 
Decree of Minister of Social Protection and Minister of Health and Labour Nº 57 of 2 7 March  2015, 
Decree of Minister of Social Affairs Nº 61 of 3 0 September  2019. 
Decree of Minister for Health and Labour N º 222 of 4 December  2014; Decree of  Minister of Social 
Affairs N º 49 of 6 August  2019; Decree of Minister for Health and Labour N º 69 of 2 6 June 2020. 
Decree of Minister or Education and Science of 3 0 December  2015. 
Norway Grants Green ICT programme 2014 -2021. 
Contract between Ministry of Finance and Foundation Kredex Nº 14-8/9486 -1 of 1 4 December  2018. 
Contract between Tallinn City Enterprise Department and Foundation Tallinn Business Incubators of 
30 April 2019. 
Programme of IVEC of 1 February  2019. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
In case of Estonian Unemployment Insurance Fund the subsidy is provided for individual consultancy 
or consultancy in mentor club for persons who have got support for starting business.  
In case of support from Estonian Research Council maximum grant amount is  up to EUR 200,000. 
In case of Enterprise Estonia the aim is to support feasibility studies, market research and other 
preparatory activities of companies for Green  ICT projects . The maximum amount of subsidy is 
EUR 20,000 and maximum aid intensity is 75 % of eligible costs.  
In case of Foundation Kredex the support granted to  support the activities of business and startup 
incubators in Ida -Viru County, through the development of the ecosystem of start -ups. G/SCM/N/372/EU/Add.8  
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  In case of Incubator Tallinn the maximum support is EUR 300,000. 
In case of IVEC the maximum support is EUR 200,000, all size of companies are eligible.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 0.205 million . 
Fiscal year 20 20 – EUR 0.257 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different subsidies.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
2.8  Subsidies  for Companies in the context of COVID -19 pandemic  
1. Period covered by the notification  
2019, 2020.  
2. Policy objective and/o r purpose of the subsidy  
To remedy a serious disturbance in the economy because of COVID -19 pandemic.  
3. Background and authority for the subsidy  
Enterprise Estonia (Foundation) . 
Ministry of Economic Affairs and Communications . 
State Shared Service Center (SSSC) . 
Foundation Kredex . 
Rural Development Foundation . 
Saaremaa Rural Municipality . 
Muhu Rural Municipality . 
4. Legislation under which subsidy is granted  
State Budget Act . 
Regulation of Government Nº 31 of 2 8 April 2020. 
Regulation of Foreign Trade and Information Technology Nº 13 of 2 9 April 2020. 
Regulation of Foreign Trade and Information Technology Nº 12 of 2 9 April 2020. 
Regulation of Minister of Finance Nº 18 of 1 3 May 2020. 
Regulation of Foreign Trade and Information Technology Nº 68 of 5 November  2020. 
Order of Government Nº 359 of 1 5 October  2020; Decree of Minister of Economic Affairs and 
Communications N º 1.1-5/20-057 of 2 9 October  2020. 
Regulation of Minister of Economic Affairs and Communications N º 60 of 9 October  2020. 
Support of Enterprise and State Loan Act ; Decision of Management Board of Kredex N º 1 of 
29 April 2020. G/SCM/N/372/EU/Add.8  
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  Rural Development and Agr icultural Market Regulation  Act; Agreement of 1 1 May 2020 between 
Ministry of Rural Affairs and Rural Development Foundation . 
Decision of Management Board of Rural Development Foundation of 1 5 May 2020. 
Regulation N º 25 approved by Saaremaa Rural Municipality Council on 1 9 June 2020. 
Regulation of Muhu Rural Municip ality Council N º 52 of 2 7 August  2020. 
5. Form of the subsidy  
Grant, loan, guarantee, capital injection . 
6. To whom and how the subsidy is provided  
Support is granted to companies for the mitigation and resolution of the crisis related to the spread 
of the coronavirus causing COVID -19 and th e consequent emergency situation.  
In case of Enterprise Estonia grants are provided according to European Commis sion Temporary 
State Aid Framework section 3.1 to small companies to  partially mitigate the damage caused by the 
COVID -19 outbreak ; to tourism sector companies to partially mitigate the damage caused by the 
COVID -19 outbreak ; support for rent payments for trade and service operators negatively a ffected 
by coronavirus outbreak ; to undertakings in touri sm and directly related sectors.  Maximum aid 
amount per company is EUR 800,000. 
In case of Ministry of Economic Affairs and Communications support  is granted to state -owned 
company Nordica for r ecapitalisation and subsidised interest loan  according to European Commission 
Temporary State Aid Framework section 3.11 . 
In case of SSSC support is granted to  companies active in international maritime passenger transport 
to compensate those operators for the damage suffered as a result of the COVID -19 outbreak and 
the governmental restrictions . The damage subject to compensation under the measure will be 
calculated on the basis of special formula : (R2019 – R2020) – (V2019 – V2020) = amount of 
compensation (where: • R2019 stands for revenue for 2019 reference period ; • R2020 stands for 
revenues for the 2020 compensation period ; • V2019 stands for variable costs for the 2019 reference 
period ; • V2020 stands for variable costs, f or the 2020 compensation period).  
In case of Kredex subsidised interest rates for loans  and loan guarantees are provided to SMEs and 
large companies  in view of the disruption caused by the COVID -19 outbreak . Loans and loans subject 
to guarantees issued to any beneficiary are limited to : (a). the double of the annual wage bill of the 
beneficiary (including social charges as well as the cost of personnel working on the company site 
but formally in the payroll of subcontractors) for 2019 or for the last year available . In the case of 
undertakings created on or after 1 January  2019, the maximum loan must not exceed the estimated 
annual wage bill for the first two years in operation ; or (b) 25% of the total turnover of the 
beneficiary in 2019 ; or (c) with appropriate justification and based on self -certification by the 
beneficiary of its liquidity needs, the amount of the loan may be increased to cover the liquidity 
needs from the moment of granting for the coming 18 months for SMEs and for the coming 
12 months for large enterprises . Maximum duration of the loan or guarantee is 6 years . Maximum 
amount of su bsidised interest rates can be EUR 800,000 per company . Kredex grants aid according 
to European Commission Temporary State Aid Framework sections 3.1, 3.2 and 3.3 . 
In case of Rural Development Foundation is provide d aid in the form of guarantees on loans and 
subsidised interest rates for loans in view of the disruption caused by the COVID -19 outbreak  both 
for SMEs and large companies . The guarantees or loans relate to both investment and working 
capital loans or needs . Loans and guarantees are limited to : (a) the double of the annual wage bill 
of the beneficiary (including social charges as w ell as the cost of personnel working on the company 
site but formally in the payroll of subcontractors) for 2019 or for the last year available . In the case 
of undertakings created on or after 1 January  2019, the maximum loan must not exceed the 
estimated annual wage bill for the first two years in operation ; or (b) 25 % of the total turnover of 
the beneficiary in 2019 ; or (c) with appropriate justification and based on self -certification by the 
beneficiary 's of its liquidity needs, the amount of the loan may be increased to cover the liquidity G/SCM/N/372/EU/Add.8  
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  needs from the moment of granting for the coming 18 months for SMEs and for the coming 
12 months for large enterprises ; but not more than EUR 5 million  per borrower . Maximum duration 
of loans and guarantees is 6 years . Rural Development Foundation grants aid according to European 
Commission Temporary State Aid Framework sections 3.1, 3.2 and 3.3.  
In case of Saaremaa Rural Municipality support is granted to  companies loca ted in Saaremaa 
municipality or self -employed persons whose economic activities have been negatively affected due 
to exceptional circumstances caused by the outbreak of the coronavirus causing COVID -19 disease.  
Maximum aid amount per company is EUR 5,000. 
In case of Muhu Rural Municipality support is granted to companies or self -employed persons 
registered and established in Muhu municipality, whose economic activities have been adversely 
affected due to exceptional circumstances due to the outbreak of the coronavirus causing COVID -19 
disease . Maximum aid amount per company is EUR 3,000. 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – EUR 0.0 million . 
Fiscal year 20 20 – grants EUR 76.061 million; l oans and subsidised interest rates 
EUR 221.376 million; g uarantees EUR 138.046 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Support is granted till 3 1 December  2021. 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
3  REGIONAL  AID 
3.1  Programme  of Investment Support  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
To create non -agricultural job s and revive the life in rural and other areas through the investment 
support of the diversification of economic activities in these areas.  To promote business  environment 
outside large cities . 
3. Background and authority for the subsidy  
Agricultural Regis ters and Information Board (ARIB) . 
Enterprise Estonia (Foundation) . 
State Shared Service Cen ter (SSSC) . 
Rõuge  Rural Municipality Government . 
Foundation KredEx . 
Lääne -Nigula Rural Municipality Government . 
Põlva  Rural Municipality Government . 
Technical Regulatory Authority . 
Tallinn City Enterprise Department . 
Ministry of Finance . G/SCM/N/372/EU/Add.8  
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  4. Legislation under which subsidy is granted  
Regulation of the Minister of Rural Affairs N º 11 of 2 3 October  2015. 
Regulation of Lääne -Nigula Rural Municipality Government Nº 33 of 2 1 August  2018. 
Decision o f Lääne -Nigula Rural Municipality Council Nº 23 of 1 8 April 2019. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 30 of 6 June 2017. 
Regula tion of Rõuge Rural Municipality Government Nº 31 of 1 8 September  2018. 
Procedure approved by Board of Enterprise Estonia Nº 1.1-5.2/16/1427 of 2 8 December  2016. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 49 of 5 August  2019; 
Procedure approved by Board of Enterprise Estonia Nº 1.1-5.2/18/524 of 1 4 May 2018. 
Regulation of Minister of Public Administration Nº 37 of 5 October  2018. 
Regul ation of Minister of Public Administration Nº 36 of 1 8 July 2019. 
Regulation of Minister of Public Administration Nº 25 of 7 May 2019. 
State aid Guidelines for the Large Infrastructure Projects of the Estonia/Russia Cross Border 
Cooperation Programmes 2014 -2020. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 38 of 1 3 July 2017. 
Regulation of Põlva Rural Municipality Government Nº 7 of 8 March  2017 Regulation of Põlva Rural 
Municipality Government Nº 59 of 2 0 December  2018. 
Regulation of Minister of Entrepreneurship and Information Technology Nº 30 of 1 1 June 2018. 
Regulation of Tallinn City Council Nº 10 of 1 1 June 2020. 
Decree of Minister of Finance Nº 1.1-4/23 of 2 1 February  2019. 
5. Form of the subsidy  
Grant . 
6. To whom and how the subsidy is provided  
In case of ARIB program the subsidy is provided to the companies diversifying or expanding 
activities, to the agricultural producers who start non -agricultural activities in rural areas or other 
companies (or activity g roups whose members are companies) active in rural areas or small towns.  
In case of Lääne -Nigula Rural Municipality subsidy is provided to sole proprietors, companies, 
foundations and non -profit organisations in order to promote business environment in Lää ne-Nigula 
Rural Municipality.  
In case of Enterprise Estonia and SSSC the subsidy is provided to companies outside the City of 
Tallinn and City of Tartu  or certain other regions  for building connection to electricity  or to supporting 
the development and inn ovation of entrepreneurship and the creation of more diverse employment 
opportunities . Maximum amount of subsidy is 100 ,000 EUR and maximum aid intensity is 60 % of 
eligible costs.  
In case of Rõuge  Rural Municipality Government subsidy is granted to sole proprietors, companies 
in order to start, expand or re -organise business in Rõuge Rural Municipality.  G/SCM/N/372/EU/Add.8  
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  In case of subsid ies provided by Enterprise Estonia investment aid is granted to large investmen t 
projects, subsidy rate is 10 % of eligible costs . Maximum aid amount per project is EUR 1-3 Mio.  
In case of subsidies provided by SSSC investment aid is granted to companies active in Ida-Viru 
County , subsidy rate is up to 25 %. M aximum aid amount per project is EUR 0.990 Mio . Support is 
also granted in the frames of Estonia/Russia  cross-border cooperation programme.  
In case of subsidies provided by Kredex  subsidy is provided for local governments or local 
government units for buil ding or reconstructing rental houses . Maximum subsidy rate is 50 %. 
In case of Põlva Rural Municipality subsidy is provided for companies active on Põlva Rural 
Municipality . Maximum amount of subsidy is EUR 10,000. 
In case of T echnical Regulatory Authority the grant is awarded to one legal entity selected through 
a public tender as investment aid with the obligation to connect the next generation electronic 
communications access network to as many passive address objects in the eligible target area as 
possib le. The beneficiary will remain the owner of the passive broadband infrastructure of the access 
network to be established . The maximum period for the use of support and the eligibility of expenses 
is five years as of the conclusion of the contract for the use of support . Maximum aid amount 
20 Mio EUR. 
In case of support programme of Tallinn subsidy is granted to small companies active in Tallinn for 
introduction of digital solutions . Maximum support amount is EUR 6,000 for maximum 70 % of 
eligible costs of the project.  
In case of M inistry of Finance ad hoc support is granted to Ruhnu Rural Municipality to perform its 
duties under the law.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 4.377 million . 
Fiscal year 20 20 – EUR 9.689 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different programmes.  
9. Statistical data permitting an assessment of th e trade effects of a subsidy  
N/A. 
4  ENVIRONMENTAL AID  
4.1  Substitution  of the Pollution Charge  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The programme aims at decreasing pollution by encouraging voluntary environmental protection 
investments.  
3. Background and authority for the subsidy  
Ministry of Environment . G/SCM/N/372/EU/Add.8  
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  4. Legislation under which subsidy is granted  
Decree of Minister of Environment Nº 259 of 1 6 March  2015. 
Decree of Minister of Environment Nº 87 of 2 6 January  2015. 
5. Form of the subsidy  
Pollution charge substitution with investments in environmental protection  or energy efficiency . 
6. To whom and how the subsidy is provided  
According to the Environmental Charges Act companies ha ve to pay a charge for the release of 
pollutants or waste into the environment . According to article 48 of the Environmental Charges Act, 
the obligation to pay the pollution charge can be substituted by investments if:  
- the polluter implements measures, which ensure the reduction of pollutants over the 
course of  3 years by not less than 15 % in comparison with the last accounting period 
prior to the implementation of such measures;  
- in case of hazardous waste, the eliminator of such waste implem ents over the course 
of 3 years measures, which allow the former hazardous waste to be treated as 
non-hazardous waste;  
- in case of hazardous waste, which technically cannot be recycled, the eliminator of the 
waste builds a waste disposal site for such was te over the course of 3 years.  
The extent to which the pollution charge is substituted shall not exceed the cost of the environmental 
protection measures.  
In certain cases the applicant has to undertake energy efficiency measures for substitution . Subsidy 
could be granted up to 65 % of eligible costs.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 1.288 million . 
Fiscal year 20 20 – EUR 0.0 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of support for applicant is up to 3 years, the program is valid till 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
4.2  Environmental  Programme  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
To preserve the stability of environment.  G/SCM/N/372/EU/Add.8  
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  3. Background and authority for the subsidy  
Environmental Investment Centre (Foundation) . 
Private Forest Centre Foundation . 
Foundation Kredex . 
Ministry of Environment . 
Muhu Rural Municipality Government . 
Lääne -Nigula Rural Municipality Government . 
4. Legislation under which subsidy is granted  
Regulation of Minister of Environment Nº 13 of 1 7 February  2006. 
Regulation of Minister of Environment Nº 10 of 3 1 January  2020. 
Terms of granting regional aid approved by the Decision of the Council of Environmental Investment 
Center Nº 607 of 2 9 April 2009. 
Terms of granting state aid on the basis of block exemption regulation approved by the Decision of 
the Council of Environment al Investment Center . 
Terms of granting de minimis  aid approved by the Council of Environmental Investment Center 
Nº 1-4/729 of 1 1 July 2014 and Nº 1-4/781 of 1 7 February  2015. 
Regulation of Minister of Environment N º 16 of 7 June 2018. 
Regulation of Minister of Environment N º 41 of 1 1 September . 
Forest Act ; Regulation of the Minister of Environment N º 10 of 1 4 April 2014. 
Regulation of Minister of Entrepreneurship and Information Technology N º 16 of 1 0 April 2018. 
Decree of Minister of Environment N º 883 of 2 9 March  2018. 
Order of Muhu Rural Municipality Government N º 156 of 4 December  2020. 
Regulation of Minister of Public Admi nistration N º 19 of 1 5 May 2020; Grant Agreement 
Nº 4-3/20-168-1; Grant Agreement N º 4-3/20-196-1. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
In case of Environmental Investment Centre the subsidy is provided to applicant's projects, which 
are targeted at environmental protection , inter alia for infrastructure projects  and for climate 
projects for developing countries . Subsidies are granted mostly for investments up to 100 % of 
eligible costs.  
Subsidies for promotion of forests are granted in accordance with the relevant conditions of Private 
Fores t Centre Foundation . Maximum subsidy amount is up to EUR 200,000. 
In case of foundation Kredex subsidy is provided to companies , non-profit organisations etc.  to invest 
in solar panels used for the production of energy . Maximum amount of subsidy is EUR 30,000. 
In case on Ministry of Environment operating costs to meet climate policy objectives are covered.  
In case of Muhu Rural Municipality and Lääne -Nigula Rural Municipality subsidy is granted to 
co-finance the reconstruction of municipality 's water and se wage infrastructure.  G/SCM/N/372/EU/Add.8  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 12.826 million . 
Fiscal year 20 20 – EUR 13.617 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to different programs.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
4.3  Support for electricity produced from renewable sources and efficient cogener ation  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to eliminate the market barrier for producers using renewable 
sources to produce electricity and to produce elect ricity in efficient cogeneration mode.  
3. Background and authority for the subsidy  
Elering AS (Transmission System Operator) . 
4. Legislation under which subsidy is granted  
Electricity Market Act § 59 . 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
The subsidy is paid monthly on the basis of applications from producers who produce electricity 
using renewable sources or producers who produce electricity in efficient cogeneration regime.  
7. Subsidy per unit, or in cases where this i s not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 86.704 million . 
Fiscal year 20 20 – EUR 86.527 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The subsidy is paid on monthly  basis for 12 years beginning from the date when the producer first 
started to produce electricity.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. G/SCM/N/372/EU/Add.8  
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  4.4  Modernisation of electricity generation installations through transitional free 
allocation of greenhouse gas emission allowances  
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to support investments in the modernisation of elect ricity 
generation installations through the free allocation of greenhouse gas emission allowances to these 
installations pursuant to article 10 (c)(5) of the EU ETS Directive, with the aim to reduce greenhouse 
gas emissions.  
3. Background and authority for the subsidy  
Ministry of Environment . 
4. Legislation under which subsidy is granted  
Ambient Air Protection Act . 
Regulation of the Minister of Environmental Affairs Nº 53 of 18 August  2011. 
5. Form of the subsidy  
Grant.  
6. To whom and how the s ubsidy is provided  
At its inception, in 2013, total free allowances will not exceed 70 % of the verified greenhouse gases 
emissions in the period 2005 -2007 from electricity installations for the amount corresponding to the 
gross final national consumption o f Estonia . The total transitional free allowances are then planned 
to be steadily decreased by 10 % each year, with free allowances being thus phased out completely 
in 2020 . The quantity of transitional free emission allowances will be deducted from the qua ntity of 
allowances that Estonia will auction.  
The costs of eligible investments are limited to the total investment costs (tangible and intangible 
assets) irrespective of operating costs and benefits of the corresponding installation . The market 
value of the free allowances shall not exceed the total investment costs . The monitoring and 
enforcement mechanism ensures that the allowances allocated are clearly mirrored by investments 
in the modernisation of the  electricity generation sector and th erefore the aid does not exceed  100% 
of the eligible costs.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 1.040 million . 
Fiscal year 20 20 – EUR 0.414 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The subsidy is paid during the transitional period of allocation of free greenhouse gas emission 
allowances  (2013 -2019).  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. G/SCM/N/372/EU/Add.8  
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  4.5  Exemption on Excise Duty  for Biogas used as Fuel . 
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to promote the usage of biogas as fuel.  
3. Background and authority for the subsidy  
Ministry of Economic Affairs and Communication s. 
4. Legislation under which subsidy is granted  
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act § 27(1)(287). 
Decree of Minister of Economic Affairs and Infrastr ucture Nº 15-0031 of 2 8 January  2015. 
5. Form of the subsidy  
Tax advantage . 
6. To whom and how the subsidy is provided  
Exemption of biogas from excise duty is targeted at companies or private persons who use biogas 
(CN 2711 29 00) as a fuel.  
7. Subsidy per  unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 201 9 – EUR 0.275 million . 
Fiscal year 20 20 – EUR 0.0 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The program is valid till 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
4.6  Subsidy  for Biomethane  Production . 
1. Period covered by the notification  
2019, 2020. 
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to increase the share of biomethane in transport and in energy 
by promot ing the production of biomethane . 
3. Background and authority for the subsidy  
Elering  AS (Transmission System Operator) . G/SCM/N/372/EU/Add.8  
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  4. Legislation under which subsidy is granted  
Regulation of Minister of Economic Affairs and Infrastructure Nº 50 of 1 8 September  2017. 
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
Subsidy is granted to biomethane producers for producing biomethane that will be used in transport 
and energy . Subsidy is paid once per the following month of production . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amou nt 
budgeted for the subsidy  
Fiscal year 20 19 – EUR 5.239 million . 
Fiscal year 20 20 – EUR 8.194 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The program is valid till the end of 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
4.7  Exemption on Excise Duty for Electricity for Electro -intensive Companies.  
1. Period covered by the notification  
2019, 2020.  
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to aid electro -intensive companies.  
3. Background and authority for the subsidy  
Ministry of Economic Affairs and Communications . 
4. Legislation under which subsidy is granted  
Alcohol, Tobacco, Fuel and Electricity Excis e Duty Act . 
5. Form of the subsidy  
Tax advantage . 
6. To whom and how the subsidy is provided  
Subsidy is granted to electro -intensive companies . The excise duty rate on electricity for an 
electro -intensive companies holding an energy excise duty exemption permit is EUR 0.5 per 
megawatt -hour of electricity . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – EUR 2.088 million . 
Fiscal year 2020 – EUR 0.716 million . G/SCM/N/372/EU/Add.8  
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  8. Duration of a subsidy and/or any other time limits attached to it  
The program is valid till the end of 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
4.8  Exemption on Excise Duty for Natu ral Gas for Companies with Intensive Gas 
Consumption.  
1. Period covered by the notification  
2019, 2020.  
2. Policy objective and/or purpose of the subsidy  
The purpose of the subsidy scheme is to aid companies with intensive natural gas consumption.  
3. Background and authority for the subsidy  
Ministry of Economic Affairs and Communications . 
4. Legislation under which subsidy is granted  
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act . 
5. Form of the subsidy  
Tax advantage.  
6. To whom and how the subsidy is provided  
Subsidy is granted to companies with intensive gas consumption . Eligible company  had an average 
gas consumption intensity of at least 13 % in the one to four consecutive financial years immediately 
preceding the application for the energy excise duty exemption permit, or the company  has an 
average gas consumption intensity of at least 13 % in the next 12 calendar months . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – EUR 0.583 million . 
Fiscal year 2020 – EUR 0.319 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The prog ram is valid till the end of 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
4.9  Temporary Use of Special purpose Diesel for C ompanies  Holding an Extraction Permit  
1. Period covered by the notification  
2019, 2020.  G/SCM/N/372/EU/Add.8  
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  2. Policy objective and/or purpose of the subsidy  
The Purpose of the subsidy scheme is to temporarily allow the use of special purpose diesel for 
companies holding an extraction permit for the purposes of the Earth 's Crust Act . 
3. Background and authority for the subsidy  
Ministry of Economic Affairs and Communications . 
4. Legislation under which subsidy is granted  
Fiscal Marking of Liquid Fuel Act ; Alcohol, Tobacco, Fuel and Electricity Excise Duty Act . 
5. Form of the subsidy  
Tax advantage.  
6. To whom and how the subsidy is provided  
The use of  special purpose diesel is allowed for  companies holding an extraction permit . The eligible 
company can use special purpose diesel on its mining claim and on the land that serves such a claim 
and on its industrial premises where equipment for producing sha le oil, electricity or heat from oil 
shale is located, as well as, on its ash deposit site, in vehicles and equipment intended for the mining 
of oil shale ; for transporting oil shale, oil shale ash and gangue, without using, for this purpose, a 
railway or a public -use road, while crossing the latter is not deemed to constitute its use . 
Subsidy is deemed to be the difference between the rate of the excise duty for diesel provided by 
the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and th e rate of the excise duty for 
specific -purpose diesel used for a purpose described above.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – EUR 0.0 million . 
Fiscal  year 2020 – EUR 0.607 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
The program is valid till 30 April 2022. 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
5  DOMESTIC SUPPORT IN AGRICULTURE  
5.1  General Services  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The programme aims at providing services and benefits to agriculture or the rural community.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . G/SCM/N/372/EU/Add.8  
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  4. Legislation under which domestic support is granted:  
State Budget Act of 2019;  
State Budget Act of 2020;  
European Union Common Agricultural Policy Implementation Act, 2014;  
Rural Development and Agricultural Market  Regulation Act of 1 9 June 2008; 
Sustainable Development Act of 2 2 February  1995; 
Organisation of Research and Development Act of 2 6 March  1997; 
Infectious Animal Disease Control Act 1 6 June 1999; 
Regulation (EU) Nº 652/2014 lays down the procedures govern ing the Union financial contribution 
for programmes for the eradication, control and monitoring of animal diseases and zoonosis ; 
Commission Regulation (EU) Nº 702/2014 of 2 5 June 2014 declaring certain categories of aid in the 
agricultural and forestry sec tors and in rural areas compatible with the internal market in application 
of articles 107 and 108 of the Treaty on the Functioning of the European Union;  
Regulation (EU) Nº 1144/2014 of the European Parliament and of the Council of 2 2 October  2014 
on info rmation provision and promotion measures concerning agricultural products implemented in 
the internal market and in third countries and repealing Council Regulation (EC) Nº 3/2008;  
Commission Regulation (EU) Nº 651/2014 declaring certain categories of aid compatible with the 
internal market in application of articles 107 and 108 of the Treaty ; 
Estonian Rural Development Plan 2014 -2020 ( RDP 2014-2020);  
National Programme "Conservation and Utilization of Plant Genetic Resources for Food and 
Agriculture 2014 -2020"; 
National Programme for Plant Breeding 2009 -2019;  
National Programme for Plant Breeding 2020 -2030;  
National Programme "Applied Research and Development in Agriculture 2015 -2021"; 
National Apiculture Programme 2017 -2019; 
National Apiculture Programme 2020 -2022; 
Strategic document „Estonian Food 2015 -2020"; 
European Commission, the Temporary State Aid Framework . 
5. Form of the subsidy  
Grants, subsidized services  
6. To whom and how the subsidy is provided  
(a) Support for research . There are several national funding programmes for 
development of agricultural policies, applied research for plant and animal production, 
etc. S uch as the national programme "Conservation and Utilization of Plant Genetic 
Resources for Food and Agriculture ( 2014-2020), National programme for plant 
breeding (2009 -2019 and 2020 -2030), National Programme "Applied Research and G/SCM/N/372/EU/Add.8  
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  Development in Agriculture 2015 -2021", the latter includes participation in JPI and 
ERA-Net projects . Also support form farm animal breedi ng and National Apiculture 
programme are in force . Three state institutions are involved in research and breeding 
activities (Agricultural Research Centre, Estonian Crop Research Institute, Estonian 
Livestock Performance Recording Ltd).  
(b) The support for  pest and disease control  to institutions for developing pest and 
disease control measures are provided . The compensation of removal and destruction 
of fallen stock . The apiculture support for preventing diseases in apiculture . The 
sub-category includes co sts of the Veterinary and Food Laboratory related to infectious 
animal diseases and prevention.  
(c) The support for training services includes practical training support, education 
support, technical aid (seminars, trainings) and measure 1 (knowledge trans fer and 
information actions) from RDP 2014-2020 and training services support from different 
national programmes . Support is provided mainly to agricultural producers, but also to 
food industry and forestry sector.  
(d) Extension and advisory services  include advice and information costs of information 
collection, publications, brochures, cross compliance materials, thematic seminars for 
farmers and entrepreneurs in forest and food sector, and consultation services for 
farmers and forest holders . RDP  2014-2020 measure 2 (Advisory services, farm 
management and farm relief services) – the aim of the advisory and extension services 
is to support the setting up of farm advisory service systems and to support the 
provision of farm advisory and extension services . The state supported advisory services 
is coordinated by the Rural Development Foundation, which must ensure the functioning 
of the agricultural advisory system, including the communication of information about 
state measures and the availability of quality  advice (training plans, advisory tools, and 
analyses, advertising the advisory service and looking for new advisers) . The Ministry 
of Rural Affairs of the Republic of Estonia has subscribed to surveys about assessing 
and planning advisory activities and t raining services.  
(e) The support for inspection services  includes services concerning production, 
veterinary and food control, food quality and safety inspection programmes.  
(f) Marketing and promotion services  are aimed at supporting the marketing and 
promotion activities for agricultural producers and processors . This is through 
participating in exhibitions and trade fairs and other joint promotion activities, gathering 
market information, granting support for activities related to improving the producti on, 
processing or marketing agricultural produce and introducing the latest research and 
development findings into production (including market research, product development, 
promotional activities, training, competitions and fairs, quality assurance etc) . The RDP 
supports participation in quality schemes for agricultural products and foodstuffs 
(measure 3) . Based on temporary state aid framework 2020 Estonia used the possibility 
of (EC) 1305/2013 art . 39b) to support SMEs in food industry particularly affe cted by 
the COVID -19 crisis.  
(g) The support for infrastructural services  involves the maintenance of amelioration 
structures, aiming at promoting the development of infrastructure in rural areas . This 
includes support for cooperation, which will contribute to cutting -edge research and 
technology and farmers, businesses and adv isory services strengthening the link 
between them, is included . The RDP 2014-2020 supports innovation cooperation 
between farmers/agricultural processors and research and development institutions . 
Support for pilot projects and the development of new prod ucts, practices, processes 
and technologies (M16.1, 16.2) includes support for cross -border activities of European 
Innovation Partnership (EIP) operational groups, whereas the innovation clusters can 
include several sub -measures of M16 (16.0, 16.2, 16.3, 1 6.5, 16.9) and have a more 
strategic and broader approach (one cluster per sector) . A cluster is a non - profit 
organization with at least 10 farmers or agricultural processors as its members, plus 
relevant partners (research and development organizations, etc), that has submitted a 
coherent action plan targeted to innovation.  G/SCM/N/372/EU/Add.8  
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  (h) Under other types , the s upport for the replacement of agricultural producer during the 
vacation period and illness and other support is provided . Estonia widened the target 
group d uring 2020 Covid -19 period to crop production.  
7. Subsidy per unit, or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 Fiscal year 2019 - EUR 42.018 million  from the Estonian state budget . 
 Fiscal year 2020 – EUR 10.049 million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of a subsidy is according to the validation period of different programmes:  
RDP 2014-2020, National Programme "Conservation and Utilization of Plant Genetic Resources for 
Food and Agriculture 2014 -2020 and for National Programme Applied Research and Deve lopment in 
Agriculture 2015 -2021, National Programme for Plant Bre eding 2009 -2019 and 2020 -2030, National 
Apiculture Programme 2017 -2019 and 2020 -2022, Strategic document „Estonian Food " 2015-2020, 
Food export promotion action plan 2019 -2022. For state aid measures, the validation period up 
to 30 March  2023. Other grants , subsidies and measures have no time limits attached to them.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.2  Public Stockholding For Food Security Purposes  
1. Period covered by the notification  
2019; 2020. 
2. Policy ob jective and/or purpose of the subsidy  
The programme covers the expenditures for purchasing and storing reserve stocks of different 
foodstuffs.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs  
4. Legislation under which it is granted  
- State Budget Act of 2019 . 
- State Budget Act of 2020 . 
- Emergency Act of 8 February  2017. 
5. Form of the subsidy  
The establishment, storage and replenishment of the stockpile are financed in accordance with 
relevant agreements.  
6. To whom and how the subsidy is provided  
Ministry of Rural Affairs has agreements with private enterprises, which act like partners of state to 
be prepared for urgency.  G/SCM/N/372/EU/Add.8  
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  7. Subsidy per unit or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 - grants of EUR 0.022 million  from Estonian state budget . 
Fiscal year 2020 - grants of EUR 0.022 million  from Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
No time limits are attached to it.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A 
5.3  Domestic food AID  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The objective of granting sc hool milk support is to increase the consumption of milk by school pupils 
and kindergarten children, to encourage healthy eating habits and thereby promote the consumption 
of milk and milk products . The school fruit scheme provides schoolchildren (and sinc e 
September  2012 also kindergarten children) with fruit and vegetables, aiming thus to encourage 
good eating habits in young people . The school fruit, vegetables and milk scheme (school scheme) 
is applicable since autumn 2017 . The school scheme combines th e two previous schemes (school 
fruit and vegetables scheme and school milk scheme) under a single legal framework and 
educational measures.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . 
4. Legislation under which it is granted  
- State Budget Act of 2019 . 
- State Budget Act of 2020 . 
- European Union Common Agricultural Policy Implementation Act 2014.  
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
The school milk support and school fruit scheme are commo n market organization measures aimed 
to increase the consumption of milk or fruits and vegetables by school pupils, as well as to encourage 
healthy eating habits and thereby promote the consumption of milk, milk products, fruits and 
vegetables . Support may  be granted for educational institutions (school/kindergarten), milk product 
providers, city governments/local municipalities or legal persons (e.g. non -profit organizations) 
which represent school/kindergarten.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 - grants of EUR 1.640 million  from the Estonian state budget . 
Fiscal year 2020 - grants of EUR 1.631 million  from the Estonian state budget . G/SCM/N/372/EU/Add.8  
- 30 - 
  8. Duration of a subsidy and/or any other time limits attached to it  
No time limits are attached to school milk support and school fruit scheme.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.4  Decoupled income support  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
Support is provided as decoupled Transitional National Aid at 2013 (TNA) to the Single Area Payment 
Scheme (SAPS).  
3. Backgro und and authority for the subsidy  
The Ministry of Agriculture . 
4. Legislation under which it is granted  
- European Union Common Agricultural Policy Implementation Act 2014 . 
- Commission Decision C(2013) 2278 of 2 5 April 2013. 
5. Form of the subsidy  
Grant s. 
6. To whom and how the subsidy is provided  
Decoupled TNA are provided to the applicant based on TNA entitlements . The level of budget was in 
2019 55 % and in 2020 50 % of allowed budget in 2013.  
These payments act as supportive measures to ensure the  basic reproduction of the sector and to 
prevent further growth of unused lands, which is also a supplementary effect of the measures.  
The TNA for arable crops (decoupled) is provided to the person who applies SAPS and who has TNA 
entitlements for arable c rops based on the determined number of hectares of arable crops in 2006 
or/and 2008.  
The TNA  for seeds (decoupled) is provided to the person dealing with agricultural activities according 
to the TNA entitlements for seeds based on the determined hectares o f seeds in 2006.  
The TNA for cattle (decoupled) is provided for dairy cattle or for dairy cows crossbreed based on the 
determined animal livestock units in 2006.  
The TNA for milk (decoupled) is provided to the person dealing with agricultural activities ac cording 
to the TNA entitlements for milk, which are based on the milk quota on his name as 
of 31 March  2007. 
The TNA for ewes (decoupled) is provided according to TNA entitlements for ewes based on the 
determined number of animals in 2007 taking into accou nt the minimum size of herd (10 ewes).  
All other decoupled income measures (single area payment scheme (SAPS), payment for agricultural 
practices beneficial for the climate and the environment, the young farmer scheme) were granted 
from European Union budg et. G/SCM/N/372/EU/Add.8  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 - grants of EUR 13.616 million  from the Estonian state budget . 
Fiscal year 2020 - grants of EUR 7.743 million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
The TNA could be paid until 2020 (included).  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.5  Income insurance and income safety - net programmes  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The purpose of the aid is to enable companies whose production has been damaged by a dangerous 
pest or a particularly dangerous animal disease to regain their agricultural production potential.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . 
4. Legislation under which it is granted  
- European Union Common Agricultural Policy Impleme ntation Act 2014 . 
- Estonian Rural Development Plan 2014 -2020 ( RDP 2014-2020) . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
The support is provided to producers whose production has been damaged by a dangerous pest or 
a particularly dangerous animal disease for buying live animals or purchase of perennial plants . In 
the case of an infectious animal disease, the aid can be applied for the purchase of an animal and 
the animal purchased may be of the same species as the affe cted animal or another species . Support 
may be applied for the purchase of animals in a volume not exceeding the number of animals killed 
due to the occurrence of an infectious animal disease, killed or killed under the precept, including 
the number of ani mals slaughtered.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – grants of EUR 0.061 million  from the Estonian state budget . 
Fiscal year 2020 – no grants . 
8. Duration of a subsidy and/or any other time limits attached to it  
Validation period is according to RDP 2014-2020.  G/SCM/N/372/EU/Add.8  
- 32 - 
  9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.6  Government financial participation  in income insurance and income safety - net 
programmes  
There were no grants of payment for government financial participation in income insurance and 
income safety -net programm es awarded in 2019 and 2020 . The insurance support is implemented 
based on (EC) 1305/2013 art . 37. 
5.7  Structural adjustment assistance provided through resource retirement programmes  
There were no grants of structural adjustment assistance provided through resource retirement 
programmes awarded in 2019 and 2020 . 
5.8  Payment for Relief from N atural Disasters  
There were no grants of payment for relief from natural disasters awarded in 2019 and 2020.  
5.9  Structural Adjustment Assistance Provided Through Investment Aids  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The programme aims at assisting producers by offering financial restructuring aid and the better 
access to capital.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs, Rural Development Foundation (RDF) . 
4. Legislation under which it is granted  
- Estonian Rural Development Plan 2014 -2020 ( RDP 2014-2020);  
- European Union Common Agricultural Policy Implementation Act 2014;  
- Rural Development and Agricultural Market Regulation Act of 1 9 June 2008; 
- State Budget Act of 2019, granted as state aid according to Commission Regulation 
(EC) Nº 702/2014 ; (EC) Nº 1408/2013;  
- State Budget Act of 2020, granted as state aid according to Commission Regulation 
(EC) Nº 702/2014 ; (EC) Nº 1408/2013.  
- State aid temporary Framework Temporary Framework (europa.eu) . 
5. Form of the subsidy  
Grants, guarantees, loans, interest concession . 
6. To whom and how th e subsidy is provided  
The objective of the measures is to develop viable and sustainable food production -oriented 
agricultural sector which is competitive, resource -efficient, and with sustainable age structure.  G/SCM/N/372/EU/Add.8  
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  Through the RDP 2014 -2020  following subsidie s are provided:  
• Measure 4 - Investments in physical assets, included support of investments into 
improving the performance of agricultural holdings, investments into processing and 
marketing of agricultural products and investments into development and mai ntenance 
of agricultural and forestry infrastructure.  
• Measure 6 - Farm and business development, included support of setting up of young 
farmers, development of small farms and support for the diversification of rural 
economy towards non -agricultural activ ities. 
• Measure 8 - Investments in forest area development and improvement of the viability 
of forests, included suppor t for prevention and elimination of damages to forests and 
restoration of damaged forests, support for elimination damage caused by forest  fires, 
natural disasters and disasters and support for improving the viability and economic 
value of forests.  
• Measure 9 - Setting up of producer groups and organisations to increase the 
competitiveness of agricultural operators and private forest owners a nd to increase 
market power through the promotion of their joint economic activity.  
• For better implementation of sub -measures 4.1 (Investments into improving the 
performance of agricultural holdings), 4.2 (Investments into processing and marketing 
of agric ultural products) and 6.4 (Support for the diversification of rural economy 
towards non -agricultural activities) of RDP 2014-2020, the following financial 
instruments are available via RDF since February  2016: 
• The growth loan for micro and small enterprise s; 
• Long-term investment loan.  
The target of the financial instruments is to ensure the better access to capital . The target group of 
the measure are small and medium size enterprises.  
RDF guarantees and loans to farmers and other rural entrepreneurs and no n-profit organisations 
from its own budget for different purposes are provided several years . In 2019 and 2020, the RDF 
continued to grant loans and guarantees to farmers and other rural entrepreneurs and non -profit 
organisations for different investments . In 2020 the possibilities of the State Aid Temporary 
Framework (p 3.1, 3.2 and 3.3) were used to provide financial relief for agricultural producers during 
Covid -19 situation.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – grants of EUR 6.051 million  from the Estonian state budget and EUR 0.038 million  
as reduced guarantee fee and loan interest concession (fo r investments), totally EUR 6.088 million  
Fiscal year 2020 – grants of EUR 7.573 million  from the Estonian state budget and EUR 5.935 million  
as reduced guarantee fee and loan interest concession (for investments), totally EUR 8.221 million  
8. Duration of a subsidy and/or any other  time limits attached to it  
Duration of a subsidy is the validation period of RDP 2014-2020.  For state aid measures and 
de minimis measures, the validation period is up to 30  March  2023 and to the end of 2027 . Duration 
of the financial instrument validatio n period ends 2023 . Duration of the Temporary State Aid 
Framework is prolonged to the end of 2021.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. G/SCM/N/372/EU/Add.8  
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  5.10   Payment Under Environmental Programs  
1. Period covered by the notificati on 
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
Support under the RDP is provided for environmentally friendly and sustainable production methods, 
animal welfare and to secure the continuous land use in NAT URA 2000 areas . The compensation of 
damages caused by wild animals and birds (protected by the Nature Conservation Act) is provided 
to compensate for the loss of yield for agricultural producers.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs, the E nvironmental Board . 
4. Legislation under which it is granted  
- European Union Common Agricultural Policy Implementation Act 2014 . 
- Estonian Rural Development Plan 2014 -2020 ( RDP 2014-2020) . 
- Nature Conservation Act of 2 1 April 2004. 
- State Budget Act of 2019, granted as state aid according to Commission Regulation 
(EC) N º 1408/2013 . 
- State Budget Act of 2020, granted as state aid according to Commission Regulation 
(EC) N º 1408/2013 . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is prov ided 
The aim of the support provided by the RDP 2014-2020 (measure 10) is to introduce environmentally 
friendly production methods that will promote sustainability of the environment by restricting the 
use of fertilizers and pesticides in the handling of f oodstuffs, and facilitates the preservation of the 
natural fertility of the soil, the assurance of biological diversity and the continued use of semi -natural 
grasslands.  Support is granted annually and is calculated based on income foregone and additional 
costs resulting from the given actions and the need to provide an incentive.  Payments are based on 
the limitations on the use of fertilizers, plant protection products or other inputs.  
The aim of the support provided by the RDP 2014-2020 (measure 11, Conve rsion and maintaining 
the organic farming) is to introduce organic farming and increase the share of organic farming in 
traditional agriculture that will promote sustainability of the environment by restricting the use of 
fertilizers and pesticides in the handling of organic foodstuffs . Support is granted annually and is 
calculated based on income foregone and additional costs resulting from the given actions and the 
need to provide an incentive.  Payments are based on the limitations on the use of fertilizers, plant 
protection products or other inputs.  
Support for Natura 2000 and Water Framework Directive payments is provided through the 
RDP 2014-2020 (measure 12, NATURA 2000 support for private forestland  is provided under 
regional assistance areas ). The objective is considering the need to maintain biological and landscape 
diversity, it is necessary to ensure areas the agricultural lands compensation for the restrictions  in 
NATURA 2000. G/SCM/N/372/EU/Add.8  
- 35 - 
  The support for grazing animals (animal welfare) is provided t hrough the RDP 2014-2020 
(measure  14). The objective of this measure is to improve animal welfare, to maintain and improve 
biological and landscape diversity and to improve the soil fertility of cultural grasslands . This support 
is available for farmers (n atural and legal persons, civil law partnerships and other associations of 
persons without the status of a legal person) . Support is paid with regard to cattle, pigs, sheep, 
goats, hens and horses, if the stocking density is up to 1.0 LU/ha.  
The Environmen tal Board finances the compensation of damages caused by wild animals and birds 
(protected by Nature Conservation Act) as de minimis  for agricultural producers . The aim of support 
is to compensate yield or animal losses or re -sowing of arable crops.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 - grants of EUR 10.843 million  from the Estonian state budget . 
Fiscal year 2020 – grants of EUR 12.089 million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of a subsidy is the validation period of RDP 2014-2020. For de minimis measure the 
validation period ends 2027.  
9. Statistical data permitting an  assessment of the trade effects of a subsidy  
N/A. 
5.11  Insurance support  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The insurance support measure was implemented since 2019 via RDP measure 17 ((EC) 1305/2013 
art. 37) to partially (70 %) compensate the insurance payments for agricultural crops, agricultural 
animals, poultry and bees to small and medium sized agricultural enterprises (SMEs) . The purpose 
is to offer a sustainable solution to agricultural  producers to manage the losses caused (more than 
20%) by adverse weather conditions, climate disasters and animal and plant diseases or pest 
infestations.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . 
4. Legislation under whic h it is granted  
- European Union Common Agricultural Policy Implementation Act 2014 . 
- Estonian Rural Development Plan 2014 -2020 ( RDP 2014-2020) . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
The insurance support is provided for small and medium -sized agricultural enterprises (SMEs).  G/SCM/N/372/EU/Add.8  
- 36 - 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – no grants . 
Fiscal year 2020 – grants of EUR 0.002 million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of a subsidy is the validation period of RDP 2014-2020.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
N/A. 
5.12   Fuel Tax Exemption  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
Tax exemption is for agricultural products  using diesel fuel marked with fiscal markers  in the 
machinery used in the agricultural production process and in grain dryer . The aim is to reduce the 
tax burden of the agricultural sector.  
3. Background and authority for the subsidy  
The Ministry of Finance, Ministry of Rural Affairs . 
4. Legislation und er which it is granted  
- Council Directive 2003/96/EC of 2 7 October  2003 Restructuring the Community 
Framework for the Taxation of Energy Products and Electricity . 
- Commission Regulation (EU) Nº 651/2014 declaring certain categories of aid compatible 
with the internal market in application of articles 107 and 108 of the Treaty . 
- Alcohol, Tobacco and Fuel Excise Duty Act of 4 December  2002. 
- Rural Development and Agricultural Market Regulation Act of 1 9 June 2008. 
5. Form of the subsidy  
Tax exemption . 
6. To whom and how the subsidy is provided  
Tax exemption is for agricultural produc ts using diesel fuel marked with fiscal markers  in the 
production process.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Tax exemption is calculated taking into account amount of diesel fuel bought for use in agriculture 
and the difference between the normal excise duty rate and reduced excise duty rate of diesel fuel 
marked with fiscal  marker.  
During the period 1  January  2019 till 30  April 2020 the subsidy per unit (1 ,000 liter) was EUR 360 
and during the period 1  May 2020 till 31  December  2020, EUR 272. G/SCM/N/372/EU/Add.8  
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  Fiscal year 2019 – tax exemption is calculated for EUR 29.451 million . 
Fiscal year 2020 – tax exemption is calculated for EUR 26.423 million . 
8. Duration of a subsidy and/or any other time limits attached to it  
There is no time limits attached to the tax exemption.  
9. Statistical data permitting an assessment of the trade effects of a su bsidy 
N/A. 
5.13   Short -Term Loans and LOAN Guarantees  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
Rural Development Foundation (RDF) gives the short -term loans (not for investments) with interest 
concession and guarantees for loans with reduced fee and are for facilitating SMEs (included 
agricultural SMEs) access to financial resources . Interest concessions of short -term loans and 
reduced fee of loan guarantees are amounted as state aid or de minim is. The guarantee extends 
only to the debtor's principal obligation to the debtor's liability, and supplements . The Foundation is 
responsible only, if the claim against the principal debtor could not be met . In 2020 the short -term 
loans and loan guarantees  were given to agricultural sector for financial relief during Covid -19 
situation based on the State Aid Temporary Framework (p. 3.1 and p. 3.2).  
3. Background and authority for the subsidy  
Rural Development Foundation, Ministry of Rural Affairs . 
4. Legislation under which it is granted  
- Rural Development and Agricultural Market Regulation Act of 1 9 June 2008. 
- State Budget Act of 2019, granted as state aid according to Commission Regulation 
(EC) N º 1408/2013 . 
- State Budget Act of 2020, granted as state aid according to Commission Regulation 
(EC) N º 1408/2013 . 
- The State Aid Temporary Framework . 
5. Form of the subsidy  
Reduced guarantee fee, loan interest concession, grants . 
6. To whom and how the subsidy is provided  
The deposit exemption and loan i nterest concession are for agricultural producers using short -term 
loans and loan guarantees given by the RDF as de minimis or state aid.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – deposit exemption EUR 0.047 million . 
Fiscal year 2020 – grants EUR 2.321 million  (State Aid Temporary Framework p 3.1) and Interest 
concessions  and lowered guarantee levies EUR 1.497 million . G/SCM/N/372/EU/Add.8  
- 38 - 
  8. Duration of a subsidy and/or any o ther time limits attached to it  
For de minimis measure, the validation period is the end of 2027.  Duration of the Temporary State 
Aid Framework is prolonged to the end of 2021.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.14   Transitional National Aid (coupled)  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
Coupled TNA are provided to the applicant, who grows suckler cows or ewes.  
The TNA for suckler cows and ewes is pr ovided to the producers equally, according to the number 
of animals the producer keeps . The animals have to be identified and registered in the Animal 
Register . For application the number of ewes must be at least 10 . It does not foresee the production 
growth and the support amount is neither linked to production volumes nor to price or income levels.  
The level of budget was in 2019 55 % and in 2020 50 % of allowed budget in 2013.  
3. Background and authority for the subsidy  
The Ministry of Agriculture . 
4. Legislation under which it is granted  
- European Union Common Agricultural Policy Implementation Act 2014;  
- Commission Decision C(2013) 2278 of 2 5 April 2013. 
5. Form of the subsidy  
Grant . 
6. To whom and how the subsidy is provided  
The sub sidy is provided to agricultural producer who grows suckler cows or ewes.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – EUR 1.487 million  from the Estonian sta te budget . 
Fiscal year 2020 – EUR 1.338 million  from the Estonian state budget . 
Two measures (Support for keeping dairy cows and support for growing fruit and vegetable) were 
granted from European Union budget.  
6  DOMESTIC SUPPORT IN FISHERIES SECTOR  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The programme aims at providing services and benefits to fisheries and aquaculture sector.  G/SCM/N/372/EU/Add.8  
- 39 - 
  3. Background and authority for the subsidy  
Rural Development Foundation ; Unemployment fund ; Environmental Board ; Estonian Agricultural 
Registers and Information Board ; The Consumer Protection and Technical Regulatory Authority.  
4. Legislation under which it is granted  
- State Budget Act of 2019;  
- State Budget Act o f 2020;  
- Commission Regulation Nº 717/2014 on the application of articles 107 and 108 of the 
Treaty on the Functioning of the European Union to de minimis  aid in the fishery and 
aquaculture sector;  
- Commission Regulation Nº 651/2014 declaring certain cat egories of aid compatible with 
the internal market in application of articles 107 and 108 of the Treaty;  
- Commission Regulation Nº 1388/2014 declaring certain categories of aid to 
undertakings active in the production, processing and marketing of fishery and 
aquaculture products compatible with the internal market in application of articles 107 
and 108 of the Treaty on the Functioning of the European Union;  
- Practice grant for producer or processor of fishery or aquaculture products;  
- Training grant for producer or processor of fishery or aquaculture products;  
- Fisheries Market Organisation Act;  
- The Employment Program 2017 -2020;  
- Labour Market Services and Benefits Act;  
- Methods for assessing the amount of damage caused by an animal, the specified scope 
and procedure for the compensation of damage, and the specified scope and procedure 
for the compensation of damage prevention measures;  
- Providing support for connection to electronic side networks enables high -speed 
broadband service;  
- Agreement of 3 0 March  2015 amending Management Contract Nº 297 between Ministry 
of Rural Affairs and Rural Development Foundation.  
5. Form of the subsidy  
Grants, compensations, loan, guarantee (collateral).  
6. To whom and how the subsidy is provided  
(a) Compensation for damage caused by animals . Compensation for damage caused by 
seals and eagles.  
(b) Training or practice aid for fish producers and fish processors.  
(c) Employment services . Improving access to the labor market and preventing early 
retiremen t (2016 -2020).  
(d) Employment program 2016 -2017 and 2017 -2020. 
(e) Support from employment programs 2016 -2020.  G/SCM/N/372/EU/Add.8  
- 40 - 
  (f) Provision of labor market services to ensure better opportunities for participation in 
employment 2015 -2020.  
(g) Enabling high -speed broadban d service.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – state aid of EUR 0.060944  million  from the Estonian state budget . 
Fiscal year 2020 – state aid of EUR 0.173510  million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
6.1  European Maritime and Fisheries Fund (EMFF) 2014 -2020 S upport  
1. Period covered by the notification  
2019; 2020. 
2. Policy objective and/or purpose of the subsidy  
The overall objective of the policy is to ensure that fishing activities contribute to the creation of 
environmental conditions capable of bein g sustained long -term which are necessary for economic 
and social development . Moreover, it should contribute to increased productivity, a fair standard of 
living for the fisheries sector and stable markets, and it should ensure the availability of resourc es 
and that supplies reach consumers at reasonable prices.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . 
4. Legislation under which it is granted  
- European Union Common Fisheries Policy Regulation (EU) N º 1380/2013;  
- European Union Common Provisions Regulation (EU) N º 1303/2013;  
- European Maritime and Fisheries Fund Regulation (EU) N º 508/2014;  
- Estonian EMFF Operational Programme 2014 -2020 (EMFF OP 2014 -2020) . 
5. Form of the subsidy  
Grants . 
6. To whom and how the su bsidy is provided  
Beneficiaries can be operators (natura l or legal person s who operat e or hold any undertakin g 
carryin g out any of the activitie s relate d to any stage of production , processing , marketing , 
distributio n and retail chain s of fisherie s and aquacultur e products), fishermen or organisations of 
fishermen.  
Rules of eligibility are set out in the regulation of measures financed under EMFF.  
Estonia implements following articles of EMFF:  
• Article 26 – Innovation in fisheries . 
• Article 28 – Partnershi ps between scientists and fishermen . G/SCM/N/372/EU/Add.8  
- 41 - 
  • Article 38 - Limitatio n of the impac t of fishin g on the marin e environmen t and adaptatio n 
of fishin g to the protectio n of species . 
• Article 40 - Protectio n and restoratio n of marin e biodiversit y and ecosystem s and 
compensatio n regime s in the framework o f sustainabl e fishin g activities . 
• Article 41 - Energy efficiency and mitigation of climate change . 
• Article 43 - Fishing ports, landing sites, auction halls and shelters . 
• Article 47 – Innovation in aquaculture . 
• Article  48 – Productive investments in aquaculture . 
• Article 50 – Promotion of human capital and networking . 
• Article 51 – Increasing the potential of aquaculture sites . 
• Article 56 – Animal health and welfare measures . 
• Article 62 - Support from the EMFF for community –led local development . 
• Article 63 - Implementation of community –led local development strategies . 
• Article 64 – Cooperation activities . 
• Article 66 - Production and marketing plan . 
• Article 67 – Storage aid . 
• Article 68 – Marketing measures . 
• Article 69 - Processing of fishery and aquaculture products . 
• Article 76 – Control and enforcement . 
• Article 77 – Data collection . 
• Article 78 – Technical assistance . 
• Article 80 – Integrated Maritime Policy . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Fiscal year 2019 – grants of EUR 3.715 million  from the Estonian state budget . 
Fiscal year 2020 – grants of EUR 3.578 million  from the Estonian state budget . 
8. Duration of a subsidy and/or any other time limits attached to it  
Validation period is according to EMFF OP 2014 -2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
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